The increase of the minimum monthly wage (MMW) in Lithuania will not resolve the problems of those who receive it and will only burden small-scale business and hinder the newcomers’ access to the labor market, said President of the Lithuanian Free Market Institute Žilvinas Šilėnas, bnn-news.com reports.
According to him, Lithuania often overestimates the size of the MMW. Silenas says there are other economic decisions that would be more efficient in improving the well-being of those in need, The Baltic Times reported.
«This decision (of the Government to push up the MMW to 850 litas (246 euros) – ELTA) would be viable if some other long-awaited changes were made too, first of all, if the Labor Code was updated. Now we have a growing wage but the Labor Code remains unchanged: old, stiff and preventing business development,» he said in an interview with ELTA.
He adds that the aim of the MMW is not about ensuring a minimum means of subsistence. The MMW is rather a state provided minimum price for job that an employer had to pay to an employee.